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Binance Got Hacked? Why Binance Is One Of The Best Cryptocurrency Exchanges - Review For Beginners!

Binance Got Hacked? Why Binance Is One Of The Best Cryptocurrency Exchanges - Review For Beginners!

On March 7th 2018, UTC 14:58-14:59 - Binance came under attack.

Before you get scared, no funds were lost! Binance reversed all irregular trades and no withdrawals made it out of the exchange.

Binance has an automatic risk management system which detected the abnormal trading activity.

There's no shortage of scams in the crypto space. When big money is involved, scum will find a way to cheat people out of it. I'm sure you've already seen the Twitter bots running rampant on every crypto related account - multiple spam replies offering to double your cryptocurrency.

They even go as far as filling the wallets with fake transactions to count as social proof. Reporting these bots does work, but it takes a while. Twitter needs to get its act together.

Phishing & Stealing - Hack Attempt

This wasn't any ordinary phishing and stealing attempt - it was big and coordinated.

In total there were 31 accounts trying to receive the stolen funds. Were they all controlled by one hacker or multiple hackers? No one knows - yet.

So how did the hackers get the account details in the first place?

Unicode domains which try to mimic binance as closely as possible.

Here's an example:

  • binance.com (good)
  • binañce.com (bad - please don't even test this domain!)

If you input ANY details onto these dodgy domains - the hackers have those details and they can do what they want with them.

They even redirect to binance.com in order to get your Google Authentication code. On top of that - when you've logged in once, you no longer have access to the phishing site. Clever stuff really.

It only takes one half asleep login to ruin your day. Never follow links from untrusted sources and always double check! Better safe than sorry.

What did the hackers do with the stolen accounts?

When someone has your account details, they're able to create a trading API (application programming interface) key. In simple terms, this is an identifier. It tells the website who you are. So if someone else is in control of this they can pretend to be you!

The hackers used the stolen API keys to place market buys on the Viacoin (VIA) / Bitcoin (BTC) market. This made the price skyrocket - check out this insane video @CryptoTutor captured: 

Remember the 31 accounts I mentioned earlier? Guess which accounts were sat selling Viacoin (VIA) at the top...

The hackers pre-deposited Viacoin into these 31 accounts and waited for the coordinated strike.

They would attempt to move all the Bitcoin (BTC) from the stolen accounts into their prepared 31 accounts by selling the overpriced VIA.

Within seconds - withdrawal requests hit the 31 accounts. Thankfully Binance has incredible safety systems in place which froze everything.

(Some users reported that their altcoins were sold as well for BTC in order to buy VIA.)

The Best Bit!

Not only did the hackers fail in their mission - they also lost all of the VIA coins they deposited into their accounts!

Let us appreciate how much effort the hackers went through in order to waste their time, money, and dignity:

  • Setting up the phishing website
  • Paying for expensive ads to target account holders 
  • Months of planning down the drain - stealing accounts since January
  • Losing all their Viacoin in the process
  • Planning & coordinating all the nitty gritty details
  • Building a bot to execute the hack

CEO Changpeng Zhao reported that the hackers Viacoin (VIA) will be donated to Binance Charity.

Hacker Bounty

On march 11th 2018 - Binance posted a follow up article announcing a juicy bounty ($250,000 USD in Binance Coin / BNB) to anyone "who supplies information that leads to the legal arrest of the hackers involved in the attempted hacking incident on Binance on March 7th, 2018."

This shows Binance cares not only for it's users, but for the whole crypto community. Hacks affect everybody - directly or indirectly. Losing your investment is devastating on a personal level. 

Other people losing their investment scares new & old investors out of this incredible space. If we want long term adoption, the most tech-fearing individuals need to feel safe.

Binance has also put away $10,000,000 USD for future bounty awards against illegal hacks.

Last Words

Binance has proven time and time again that they can handle themselves in difficult situations.

The communication and support they provide while these dramatic events are happening are unrivaled. 

CEO Changpeng Zhao can always be found on Twitter dispelling rumors and keeping the crypto community updated.

They are currently leading the space in terms of public relations and trust.

Ask any questions down below - What's your experience with Binance? 

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